Supposed Poverty Eradicating Cryptocurrency Criticized as Just Another Complex Nigerian Ponzi Scheme – Featured Bitcoin News

After reports that merchants and holders of “Zugacoin” cryptocurrency are unable to make withdrawals, the founder of the Nigerian crypto, Sam Zuga responded by accusing unnamed “ignorant people” of working to tarnish the project. Potential investors in zugacoin should learn as much detail about it before they invest.

Future Financial System

As promoters of zugacoin — a Nigerian cryptocurrency ostensibly created to end poverty in Africa — continue to tout the token as a legitimate digital currency, there are growing reports on social media of merchants and holders of the coin who have failed to withdraw. The reports suggest that the project may be yet another fraud disguised as complex cryptocurrency projects.

The complaints and allegations against the project have, in turn, prompted Archbishop Sam Zuga, the founder of Zugacoin, to issue a flurry of Facebook posts condemning “ignorant people” peddling false information about the project. In one of his latest posts, Zuga said he was not engaged in cryptocurrency trading but was instead “building a digital financial system to correct a financial future.” He added that his crypto, which “automatically gives you 200% profit of any amount you transfer to it,” is only being used as a “driver of the system into that future.”

According to the long August 25, 2022 blog post, the founder refutes allegations that there was manipulation in the Zugacoin eco-system. Zuga’s post also explains how the ecosystem works and why some holders may be having problems withdrawing. He added:

“The only challenge is lack of knowledge from the users. If the number of people withdrawing is less than those who deposit, then anyone can easily withdraw. If what’s going out exceeds what’s coming in, no system will survive.

“There is no problem anywhere in the Samzuga ecosystem. Your ignorance about how it works is the only problem. Merchants can transfer money from the Merchant area of the merchant app to the Merchants wallet and from there to P2P conveniently.”

In his earlier Facebook posts, Zuga similarly attacks unnamed individuals whom he accuses of besmirching the “noble project” with their ignorance.

Experts Question Project’s Lack of Transparency

However, despite Zuga’s spirited defense of the crypto project, influential players in Nigeria’s blockchain industry told Bitcoin.com News they remained unconvinced. They point to the project’s lack of transparency or its apparent exploitation of Nigerian people’s affinity to religion or their religious leaders as red flags.

One of the players, Ophi Rume, aka “Cryptopreacher,” told Bitcoin.com News that unless the Zugacoin founder reveals the rest of the team behind the project it will be difficult to make a judgment about the project’s legitimacy. Noting that scammers often exploit people’s desperation and ignorance, Rume, a blockchain analyst and educator, said ordinary Nigerians should only consider investing in this project after doing some basic due diligence. Rume stated:

Nigerians are able to learn much more about Zugacoin by simply searching the keywords: Is Zugacoin fraud or Ponzi scheme? Nigerians should also get to know all those involved before they invest. The board of directors and developers should be known, as well as whether Github is used for the project.

Rume claims that prospective investors will be less likely to invest if they learn about the project details.

Meanwhile, another expert who wished to remain anonymous lamented scammers’ growing use of religious titles when marketing their projects to unsuspecting victims. Expert says that people are less likely to criticize dubious cryptocurrency projects if they’re led by religious leaders. Expert explained that:

“I have found that no one wants to be seen as the prophet of doom or enemy of progress when it comes to big and questionable projects like Zuga. A Christian leader, the founder of Zuga has used his influence and followers to get Zuga noticed. Remember Inksnation.”

Paul Ezeafulukwe (the former president of the Stakeholders Blockchain Technology Association of Nigeria, SIBAN), and Bitget Africa’s team leader, believes that zugacoin has been the most volatile and unreliable cryptocurrency. Some promises included claims that cryptocurrency would end poverty, as well as reduce Nigeria’s debt.

“Another promise they have made which is like tales by moonlight is their ability to pay $97 billion dollars worth of Nigeria’s national debt and also help Africa clear her debts. From their position it is clear they don’t understand how cryptocurrencies work, I believe the promoters were sold a lie that your ability to mint a token could translate to instant monetary value without building an ecosystem to support the utility of the token,” explained the ex-SIBAN leader.

Ezeafulukwe expressed regret that investors have made such poor investments in zugacoin on the basis of these promises. For investors who are still thinking of buying zugacoin, Ezeafulukwe said they must “look at these two promises [poverty eradiction and paying off Nigeria’s debt] and do simple research to find out if these things are possible by a single individual.”

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Terence Zimwara

Terence Zimwara, a Zimbabwean journalist, writer and author who has been awarded the Zimbabwe Booker Prize. He is a prolific writer on the economic woes of African countries, as well as digital currencies that can be used to provide an escape path for Africans.